Hong Kong banks introduce Money Safe accounts to fight scams

The Register reports that banks across Hong Kong have rolled out a new type of account the Hong Kong Monetary Authority refers to as "Money Safe," which is designed to reduce fraud and scam losses by requiring customers to visit a bank in person to access protected funds.

The initiative was announced in late 2024 by HKMA Chief Executive Eddie Yue, who said it was a response to rising scam activity that has led to significant customer losses, often involving unauthorized payments from bank accounts. Money Safe accounts allow customers to set aside deposits that cannot be accessed digitally. When customers want to withdraw or transfer these funds, banks must conduct face-to-face identity and anti-scam checks.

Digital-only banks must carry out similar verification at their offices. Banks were required to roll out the accounts by December 31, and all complied, with some adding features such as in-app account setup and promoting their services publicly. The government is now actively encouraging residents to use Money Safe accounts for money they do not plan to spend soon.